What Receivers Want

A receiver’s primary interest will be that of the appointing bank. Their primary objective is to sell the property for the best price possible in a short period of time in order to repay any outstanding loans.

As a general rule receivers will greatly prefer to have a tenant in the premises while they attempt to sell them for two reasons:

  1. To obtain rental income from the premises while they are being sold; and
  2. To maintain, or even grow, foot traffic to the premises, thus increasing its sale value.

The sale process is conducted as swiftly as practicable however, and receivers may also be reluctant to have tenants in place with long term leases as it can limit the market for the property. Many tenants will be unwilling to make use of the premises for such a short period of time, with little security of tenancy. This is the perfect opportunity for an empty space project.

It should be noted however, that at times receivers may actually prefer to have tenants in place with long term leases as it can add value to the property for certain purchasers – this must be assessed on a case-by-case basis, and can often be determined simply by asking the receiver.

Receivers will also often be interested in such factors as:

  • Reducing property management costs
  • Increasing footfall to their property as a whole
  • Maintaining occupancy of premises
  • Reducing security risks and hazards such as vandalism and squatting
  • Obtaining and retaining tenants who comply with contractual agreements
  • Obtaining tenants who deal with products and services suitable to the property, location etc
  • Obtaining and maintaining tenants that meet presentation requirements and standards
  • Increasing the appeal of their premises to tenants seeking long-term leases.